Panamanian Legislators Approve Changes to Social Security
Protests in Panama, March 2025. Photo: EFE
March 11, 2025 Hour: 12:09 pm
SUNTRACS rejected the reforms as they put upcoming generations at risk.
On Monday, the National Assembly approved, in a second debate, Bill 163, which amends the Social Security Fund (CSS) Law. This decision was made with 47 votes in favor, 21 votes against, and one abstention.
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The bill is expected to be approved in a third debate on Tuesday. Meanwhile, labor unions have called on citizens to protest outside the National Assembly.
The administration of President Jose Mulino argues that the bill aims to improve the disability, old-age, and death pension fund, strengthen healthcare benefits, optimize investment returns, and enhance the governance of social security.
One of the most controversial aspects of the reform, however, is the increase in the retirement age by three years for both men and women. Citizens are questioning this decision due to its impact on workers’ quality of life.
The National Union of Workers of Construction and Similar Industries (SUNTRACS) rejected the approval of the bill and accused the National Assembly of orchestrating a theft from the people. Workers claim that the initiative seeks to privatize Social Security Fund assets and establish an individual account system.
Saul Mendez, leader of the construction workers, and Marco Andrade, secretary of the National Confederation of Independent Trade Union Unity, warned that the social security reforms would condemn many Panamanians to live in poverty.
SUNTRACS also pointed out that the proposed reforms would not only affect current workers but also put the future of upcoming generations at risk.
The Social Security Fund is one of the most important institutions in Panama. In recent years, its sustainability has been a topic of public debate due to the financial deficits it faces. However, unions insist that any reform must prioritize the well-being of members and uphold the principle of solidarity that has characterized the system.
teleSUR/ JF
Sources: Telemetro – La Estrella
